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Which of the following curve has a negative slope and cannot interest each other?
  • a)
    Isoquants
  • b)
    Demand and supply curves
  • c)
    Indifference curves
  • d)
    None of above
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Which of the following curve has a negative slope and cannot interest ...
An indifference curve connects points on a graph representing different quantities of two goods, points between which a consumer is indifferent. Along the curve, the consumer has no preference for either combination of goods because both goods provide the same level of utility.
Each indifference curve is convex to the origin, and no two indifference curves ever intersect.
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Community Answer
Which of the following curve has a negative slope and cannot interest ...
Explanation:

Negative Slope:
A negative slope means that the curve is sloping downwards from left to right. This indicates that as we move along the curve from left to right, one variable decreases while the other variable increases.

Cannot Interest Each Other:
Two curves cannot intersect each other when they represent the relationship between the same two variables.

Indifference Curves:
Indifference curves are a graphical representation of a consumer's preference for different combinations of two goods. They show all the combinations of two goods that give the same level of utility or satisfaction to the consumer. Indifference curves have a negative slope because of the law of diminishing marginal rate of substitution.

Why Indifference Curves have a negative slope and cannot intersect:
- Indifference curves have a negative slope because of the law of diminishing marginal rate of substitution. This law states that as a consumer consumes more of one good, the marginal utility of that good decreases while the marginal utility of the other good increases. Thus, to maintain the same level of satisfaction, the consumer needs to consume more of the other good. This results in a negative slope of the indifference curve.
- Indifference curves cannot intersect because each curve represents a unique level of satisfaction. If two curves intersect, it would mean that the consumer is indifferent between two different levels of satisfaction, which is not possible.

Conclusion:
Therefore, the correct option is C, as indifference curves have a negative slope and cannot intersect each other.
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Read the following passage and answer the question that follows:The ordinalist revolution originates in the criticism of the psychological foundations of the theory of demand, namely, the principle of decreasing marginal utility as Alfred Marshall ([1890] 1898) used it. The rejection of hedonist hypotheses led Irving Fisher (1892) and Pareto (1896–97, 1900, 1909) to favour an objective or “positive” approach to economic concepts.The “ordinalist revolution” (Ormazabal 1995, 116) is grounded in a methodological transformation of economics that put the facts of objective experience as a foundation of economics and provided a research program for the ensuing years (Green and Moss 1993; Lewin 1996). Mathematically, ordinalism is entirely based upon the idea that one can dispense with the use of a specific utility function and that no meaning shall be attached to utility measurement, except as an ordinal principle.Clearly, the development of ordinalist must be separated from the introduction of the concept of the indifference curve. Ordinalism was first advocated in Fisher’s “Mathematical Investigations” (1892) and Pareto’s Suunto (1900) and Manual ([1909] 1971), while the indifference curve had appeared in F. Y. Edge worth’s Mathematical Psychics (1881). It was thus only through Fisher’s and Pareto’s recasting that the concept of the indifference curve became irreversibly associated with the promotion of ordinalism.Along the way, the recasting of the theory of choice along ordinalist lines raised a number of issues (about integrability, measurability, and complementarity) that would be progressively settled. A reasonable closing date for the ordinalist revolution is 1950, after Houthakker (1950) and Samuelson’s (1950) contributions.From the late 1920s, the Paretian school was progressively gaining a larger audience while the use of the concept of marginal utility and other derivative concepts was challenged. Consequently, demand theory was recast along the principlesof individual preferences and ordinal utility functions. Nevertheless, English authors proved very silent about the meaning of indifference curves. Most if not all of the reflections after 1920 about the nature of indifference curves took place in America, mainly under the impulse of Henry Schultz at Chicago. This is an American story.Q. ______ is a curve showing a different combination of two goods, each combination offering the same level of satisfaction to the consumer.

Read the following passage and answer the question that follows:The ordinalist revolution originates in the criticism of the psychological foundations of the theory of demand, namely, the principle of decreasing marginal utility as Alfred Marshall ([1890] 1898) used it. The rejection of hedonist hypotheses led Irving Fisher (1892) and Pareto (1896–97, 1900, 1909) to favour an objective or “positive” approach to economic concepts.The “ordinalist revolution” (Ormazabal 1995, 116) is grounded in a methodological transformation of economics that put the facts of objective experience as a foundation of economics and provided a research program for the ensuing years (Green and Moss 1993; Lewin 1996). Mathematically, ordinalism is entirely based upon the idea that one can dispense with the use of a specific utility function and that no meaning shall be attached to utility measurement, except as an ordinal principle.Clearly, the development of ordinalist must be separated from the introduction of the concept of the indifference curve. Ordinalism was first advocated in Fisher’s “Mathematical Investigations' ' (1892) and Pareto’s Suunto (1900) and Manual ([1909] 1971), while the indifference curve had appeared in F. Y. Edge worth’s Mathematical Psychics (1881). It was thus only through Fisher’s and Pareto’s recasting that the concept of the indifference curve became irreversibly associated with the promotion of ordinalism.Along the way, the recasting of the theory of choice along ordinalist lines raised a number of issues (about integrability, measurability, and complementarity) that would be progressively settled. A reasonable closing date for the ordinalist revolution is 1950, after Houthakker (1950) and Samuelson’s (1950) contributions.From the late 1920s, the Paretian school was progressively gaining a larger audience while the use of the concept of marginal utility and other derivative concepts was challenged. Consequently, demand theory was recast along the principlesof individual preferences and ordinal utility functions. Nevertheless, English authors proved very silent about the meaning of indifference curves. Most if not all of the reflections after 1920 about the nature of indifference curves took place in America, mainly under the impulse of Henry Schultz at Chicago. This is an American story.Q. How is utility measured in Ordinal utility theory?

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Which of the following curve has a negative slope and cannot interest each other?a)Isoquantsb)Demand and supply curvesc)Indifference curvesd)None of aboveCorrect answer is option 'C'. Can you explain this answer?
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